Seven key HR trends to watch in 2024

The past few years have seen significant shifts in the way organizations manage their talent, with the advent of new technologies, changing demographics, and a global pandemic reshaping the HR function.

Here are some key trends that HR professionals should keep an eye on in 2024.

1. Generative AI: The new frontier in HR automation

Generative AI, a type of artificial intelligence designed to generate new data from existing data, is set to revolutionize HR and talent management functions. This technology can automate many HR tasks, freeing up HR leaders to focus on more strategic activities.

HR leaders could look to automate candidate screening with AI, which can quickly analyze resumes and cover letters to shortlist applicants based on predetermined criteria. They might also introduce chatbots to handle routine employee queries about benefits or policies.

Additionally, AI-driven analytics can help in identifying patterns and predicting employee turnover, aiding in proactive retention strategies. Training programs tailored by AI to individual learning styles and career paths can significantly enhance employee development. By adopting these tools, HR leaders can ensure a more efficient and responsive HR function.

Key HR tech providers to watch in this space include Phenom, Oracle Cloud HCM, SeekOut, and Businessolver.

2. Skills-Based hiring: The future of talent acquisition?

The focus on skills over traditional qualifications like college degrees is gaining momentum. This approach can expand talent pools and better match the right person to the right job.

HR leaders should increasingly prioritize skills-based hiring, which involves identifying core skills required for a role and matching candidates based on their proven abilities, regardless of their formal education. This approach broadens the talent pool, allowing access to diverse candidates with relevant competencies who might not have traditional qualifications.

Utilizing skills assessments and performance tasks in the recruitment process can aid in better aligning individuals’ capabilities with job needs, leading to more effective and inclusive hiring practices.

It also offers new opportunities to tap into underserved sources of talent and increase economic opportunity for all. HR tech providers leading the way in this area include Reejig, retrain.ai, Microsoft, and Cornerstone.

3. Adapting to evolving workplace demographics

As the workforce continues to evolve, organizations need to consider how to support their older, more experienced employees while meeting the different needs of the newest entrants to the workforce.

For older, experienced employees, focus on flexible work arrangements, opportunities for mentorship, and continuous learning programs to leverage their expertise. Conversely, for newer workforce entrants, provide robust onboarding, career development paths, and technology-driven work environments. Balancing these needs fosters an inclusive, dynamic workplace that values all employees’ contributions.

HR tech providers to watch in this space include Wellthy, Torchlight, and Cariloop.

4. The changing nature of compensation

In 2024, we expect to see a more expansive view of compensation as organizations grapple with issues of pay equity and transparency. Research has shown that employees want to be assured of fairness and equitable treatment, and this will become a more fundamental component of talent strategy and employee engagement.

HR leaders can adopt approaches like conducting regular pay audits to identify and address gaps, establishing clear criteria for compensation levels, and openly discussing these policies with employees to foster trust and fairness in the workplace.

An example approach for HR leaders might be conducting annual pay equity audits to identify discrepancies and then creating targeted initiatives to address any disparities, ensuring all employees are compensated fairly based on role, experience, and performance, rather than factors like gender or ethnicity.

5. The rise of hybrid work

The hybrid work model is here to stay, with 60% of companies planning to hire for hybrid roles in 2024.

However, a backlash against hybrid work could damage companies that fail to recognize the benefits of this model. HR leaders will need to intentionally build culture connectedness into the hybrid workplace to avoid long-term reputation and attrition risks.

HR leaders might focus on organizing regular in-person and virtual team-building events and establishing clear communication norms to maintain a strong company culture and foster a sense of belonging among hybrid workers.

6. Increased investment in DEI initiatives

Diversity, equity, and inclusion (DEI) will continue to be a priority for organizations in 2024. This will involve not just hiring but also nurturing an environment where diverse employees thrive, with policies that ensure equitable treatment and opportunities for all.

Specific initiatives might include targeted mentorship programs for women, ensuring equal representation in leadership roles, and addressing gender pay gaps through transparent compensation strategies.

A majority of HR decision-makers stated that their company would prioritize diversity hiring, and with the ascension of AI, DEI will play a vital role in mitigating biases in hiring algorithms.

7. Predictive Analytics and Data-Driven HR

People analytics and data-driven HR practices will enable employers to make more informed decisions about their workforce. Tools that predict the likelihood of a candidate accepting a job offer, productivity metrics, turnover rate tracking, and talent management platform data will see an uptick in usage.